general assessment: recent deregulation and liberalization of telecommunications laws and policies have prompted rapid change; local and long distance service provided throughout all regions of the country, with services primarily concentrated in the urban areas; steady improvement is taking place with the recent admission of private and private-public investors, but telephone density remains low at about seven for each 100 persons nationwide but only one per 100 persons in rural areas and a national waiting list of over 1.7 million; fastest growth is in cellular service with modest growth in fixed lines

domestic: expansion of domestic service, although still weak in rural areas, resulted from increased competition and dramatic reductions in price led in large part by wireless service; mobile cellular service (both CDMA and GSM) introduced in 1994 and organized nationwide into four metropolitan cities and 19 telecom circles each with about three private service providers and one state-owned service provider; in recent years significant trunk capacity added in the form of fiber-optic cable and one of the world´s largest domestic satellite systems, the Indian National Satellite system (INSAT), with five satellites supporting 33,000 very small aperture terminals (VSAT)

droughts; flash floods, as well as widespread and destructive flooding from monsoonal rains; severe thunderstorms; earthquakes

Environment - current issues:

deforestation; soil erosion; overgrazing; desertification; air pollution from industrial effluents and vehicle emissions; water pollution from raw sewage and runoff of agricultural pesticides; tap water is not potable throughout the country; huge and growing population is overstraining natural resources

English enjoys associate status but is the most important language for national, political, and commercial communication; Hindi is the national language and primary tongue of 30% of the people; there are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit; Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language

cabinet: Cabinet appointed by the president on the recommendation of the prime minister

elections: president elected by an electoral college consisting of elected members of both houses of Parliament and the legislatures of the states for a five-year term (no term limits); election last held July 2002 (next to be held 18 July 2007); vice president elected by both houses of Parliament for a five-year term; election last held 12 August 2002 (next to be held August 2007); prime minister chosen by parliamentary members of the majority party following legislative elections; election last held April - May 2004 (next to be held May 2009)

bicameral Parliament or Sansad consists of the Council of States or Rajya Sabha (a body consisting of not more than 250 members, up to 12 of whom are appointed by the president, the remainder are chosen by the elected members of the state and territorial assemblies; members serve six-year terms) and the People´s Assembly or Lok Sabha (545 seats; 543 elected by popular vote, 2 appointed by the president; members serve five-year terms)

elections: People´s Assembly - last held 20 April through 10 May 2004 (next must be held before May 2009)

numerous religious or militant/chauvinistic organizations, including Vishwa Hindu Parishad, Bajrang Dal, and Rashtriya Swayamsevak Sangh; various separatist groups seeking greater communal and/or regional autonomy, including the All Parties Hurriyat Conference in the Kashmir Valley and the National Socialist Council of Nagaland in the Northeast

three equal horizontal bands of saffron (subdued orange) (top), white, and green with a blue chakra (24-spoked wheel) centered in the white band; similar to the flag of Niger, which has a small orange disk centered in the white band

Economical information

Economy - overview:

India´s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for half of India´s output with less than one quarter of its labor force. About three-fifths of the work-force is in agriculture, leading the UPA government to articulate an economic reform program that includes developing basic infrastructure to improve the lives of the rural poor and boost economic performance. Government controls on foreign trade and investment have been reduced in some areas, but high tariffs (averaging 20% on non-agricultural items in 2004) and limits on foreign direct investment are still in place. The government in 2005 liberalized investment in the civil aviation, telecom, and construction sectors. Privatization of government-owned industries essentially came to a halt in 2005, and continues to generate political debate; continued social, political, and economic rigidities hold back needed initiatives. The economy has posted an average growth rate of more than 7% in the decade since 1994, reducing poverty by about 10 percentage points. India achieved 7.6% GDP growth in 2005, significantly expanding manufacturing. India is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers. Despite strong growth, the World Bank and others worry about the combined state and federal budget deficit, running at approximately 9% of GDP; government borrowing has kept interest rates high. Economic deregulation would help attract additional foreign capital and lower interest rates. The huge and growing population is the fundamental social, economic, and environmental problem.

since China and India launched a security and foreign policy dialogue in 2005, consolidated discussions related to the dispute over most of their rugged, militarized boundary, regional nuclear proliferation, Indian claims that China transferred missiles to Pakistan, and other matters continue; various talks and confidence-building measures have cautiously begun to defuse tensions over Kashmir, particularly since the October 2005 earthquake in the region; Kashmir nevertheless remains the site of the world´s largest and most militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas); in 2004, India and Pakistan instituted a cease fire in Kashmir and in 2005, restored bus service across the highly militarized Line of Control; Pakistan has taken its dispute on the impact and benefits of India´s building the Baglihar Dam on the Chenab River in Jammu and Kashmir to the World Bank for arbitration; UN Military Observer Group in India and Pakistan (UNMOGIP) has maintained a small group of peacekeepers since 1949; India does not recognize Pakistan´s ceding historic Kashmir lands to China in 1964; disputes persist with Pakistan over Indus River water sharing; to defuse tensions and prepare for discussions on a maritime boundary, in 2004, India and Pakistan resurveyed a portion of the disputed boundary in Sir Creek estuary at the mouth of the Rann of Kutch; Pakistani maps continue to show its Junagadh claim in Indian Gujarat State; discussions with Bangladesh remain stalled to delimit a small section of river boundary, to exchange 162 miniscule enclaves in both countries, to allocate divided villages, and to stop illegal cross-border trade, migration, violence, and transit of terrorists through the porous border; Bangladesh protests India´s attempts to fence off high-traffic sections of the border; dispute with Bangladesh over New Moore/South Talpatty/Purbasha Island in the Bay of Bengal deters maritime boundary delimitation; India seeks cooperation from Bhutan and Burma to keep Indian Nagaland and Assam separatists from hiding in remote areas along the borders; Joint Border Committee with Nepal continues to demarcate minor disputed boundary sections; India maintains a strict border regime to keep out Maoist insurgents and control illegal cross-border activities from Nepal

world´s largest producer of licit opium for the pharmaceutical trade, but an undetermined quantity of opium is diverted to illicit international drug markets; transit point for illicit narcotics produced in neighboring countries; illicit producer of methaqualone; vulnerable to narcotics money laundering through the hawala system